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Kayla's utility depends on her consumption of good q₁ and good 92: Her uncompensated demands for good q₁ and good q2 are and her compensated demands for good q₁ and good q2 are 911.176U Therefore, her expenditure function (E) is Let the price of good q₁ initially be $15 and the price of good q2 be $20. Kayla has income of $1,500. If the price of good q₁ increases from $15 to $20, what is Kayla's compensating variation? Kayla's compensating variation (CV) is U = 91 0.6Y P₁ 91 = 0.4Y P₂ P2 and q₂ = 0.784U P₁ E = 1.96ū (p₁0.6) (P₂04). CV= =(Enter a numeric response using a real number rounded to two decimal places.) 0.6 0.4 0.4 and q₂ = 0.6 (B)Dº

Kayla's utility depends on her consumption of good q₁ and good 92: Her uncompensated demands for good q₁ and good q2 are and her compensated demands for good q₁ and good q2 are 911.176U Therefore, her expenditure function (E) is Let the price of good q₁ initially be $15 and the price of good q2 be $20. Kayla has income of $1,500. If the price of good q₁ increases from $15 to $20, what is Kayla's compensating variation? Kayla's compensating variation (CV) is U = 91 0.6Y P₁ 91 = 0.4Y P₂ P2 and q₂ = 0.784U P₁ E = 1.96ū (p₁0.6) (P₂04). CV= =(Enter a numeric response using a real number rounded to two decimal places.) 0.6 0.4 0.4 and q₂ = 0.6 (B)Dº

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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Kayla's utility depends on her consumption of good q₁ and good 92: Her uncompensated demands for good q₁ and good 92 are and her compensated demands for good q₁ and good 92 are 9₁ = 1.176U Therefore, her expenditure function (E) is Let the price of good q₁ initially be $15 and the price of good q2 be $20. Kayla has income of $1,500. If the price of good q₁ increases from $15 to $20, what is Kayla's compensating variation? Kayla's compensating variation (CV) is CV= U = 9₁ 0.6Y P₁ 91 0.4Y P2 P2 and 92 = 0.784U P1 E = 1.96ū (p₁0.6) (p₂0.4). (Enter a numeric response using a real number rounded to two decimal places.) 0.6 0.4 92 and 92 0.4 P₁ P2 0.6
Transcribed Image Text:Kayla's utility depends on her consumption of good q₁ and good 92: Her uncompensated demands for good q₁ and good 92 are and her compensated demands for good q₁ and good 92 are 9₁ = 1.176U Therefore, her expenditure function (E) is Let the price of good q₁ initially be $15 and the price of good q2 be $20. Kayla has income of $1,500. If the price of good q₁ increases from $15 to $20, what is Kayla's compensating variation? Kayla's compensating variation (CV) is CV= U = 9₁ 0.6Y P₁ 91 0.4Y P2 P2 and 92 = 0.784U P1 E = 1.96ū (p₁0.6) (p₂0.4). (Enter a numeric response using a real number rounded to two decimal places.) 0.6 0.4 92 and 92 0.4 P₁ P2 0.6
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